Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - More than 9.1trillion VND (391 million USD) worth of corporate bonds were issued in thefirst quarter of 2019, up 222 percent year on year.
The Refrigeration Electrical EngineeringCorporation (HoSE: REE) had the highest value of corporate bond issuance with 2.32trillion VND (100.32 million USD).
REE’s bonds will mature in 10 years withannual yield rate of 7 percent.
HCM City Infrastructure Investment JSC(HoSE: CII) issued 10-year bonds worth 1.15 trillion VND (49.72 million USD) atan annual yield rate of 7.2 percent.
According to the research division of SSISecurities Inc (SSI), the value of corporate bond issuance this year hasincreased because firms need new channels to raise capital instead of lookingfor bank funding.
The State Bank of Việt Nam (SBV) hasrecently granted a maximum 15 percent credit growth rate a year for somecommercial banks that have met Basel II standards.
Other banks that do not meet Basel IIstandards will have maximum credit growth rate of 10-13 percent a year.
Meanwhile, the SBV has already askedcommercial banks to lower the rate of short-term capital used for medium- andlong-term lending from 45 percent to 40 percent, starting in 2019.
Vietnam’s corporate bond market isexpected to improve in the future as more international investors are eyeinglocal businesses for their higher quality and performance.-VNS/VNA
The Refrigeration Electrical EngineeringCorporation (HoSE: REE) had the highest value of corporate bond issuance with 2.32trillion VND (100.32 million USD).
REE’s bonds will mature in 10 years withannual yield rate of 7 percent.
HCM City Infrastructure Investment JSC(HoSE: CII) issued 10-year bonds worth 1.15 trillion VND (49.72 million USD) atan annual yield rate of 7.2 percent.
According to the research division of SSISecurities Inc (SSI), the value of corporate bond issuance this year hasincreased because firms need new channels to raise capital instead of lookingfor bank funding.
The State Bank of Việt Nam (SBV) hasrecently granted a maximum 15 percent credit growth rate a year for somecommercial banks that have met Basel II standards.
Other banks that do not meet Basel IIstandards will have maximum credit growth rate of 10-13 percent a year.
Meanwhile, the SBV has already askedcommercial banks to lower the rate of short-term capital used for medium- andlong-term lending from 45 percent to 40 percent, starting in 2019.
Vietnam’s corporate bond market isexpected to improve in the future as more international investors are eyeinglocal businesses for their higher quality and performance.-VNS/VNA
VNA
